tag:blogger.com,1999:blog-3764912039741974037.post3970580539384625989..comments2018-03-07T08:21:32.167-05:00Comments on Expect[ed] Loss: The S&P Lawsuit: Can It Fix the Rating System?PF2http://www.blogger.com/profile/13893025381406343985noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3764912039741974037.post-83567901252074084702013-03-30T00:09:14.838-04:002013-03-30T00:09:14.838-04:00Their need to be a different group of companies do...Their need to be a different group of companies doing the ratings.QUALITY STOCKS UNDER 5 DOLLARShttp://www.chicagoillinoisbusinesslist.com/business/5066133.htmnoreply@blogger.comtag:blogger.com,1999:blog-3764912039741974037.post-12681010232950309382013-03-22T04:35:14.198-04:002013-03-22T04:35:14.198-04:00Frank Raiter is a good, honest person as I recall....Frank Raiter is a good, honest person as I recall. Michael Lewis was wrong about this:<br /><i>&quot;rating agency employees are just a bunch of bottom feeders wearing J.C. Penney suits and sucking up to the investment bankers who might one day hire them.&quot;</i><br /><br />I worked on the buy-side as a proprietary trader, for a non-US bank and for a hedge fund. It made me nervous, worried. So I did the next best thing, which was to work for S&amp;P. I did not &quot;suck up&quot; to investment bankers. Ratings agency employees earn a fraction of what I-bank employees earn. It is, or was, prior to 2000, much better, intellectually challenging work.<br /><br />Open source ratings software... you mention that no interest is expressed in funding it. I can think of many reasons, am not certain of any of them though. Personally, I don&#39;t believe that ratings with zero rating committee discretion would have much value. But there are far less worthwhile projects that have received all sorts of enthusiastic financial backing! If it were up to me, I&#39;d much rather some of those funds go toward what you suggested instead. Even if it weren&#39;t successful in the long run, it would increase understanding, and could lead to something that might be an improvement over what we have now. Credit ratings <b>are</b> important. Without them, or without public access to them in some form, capital markets become more opaque.Ellie Khttps://www.blogger.com/profile/11231840376889029260noreply@blogger.comtag:blogger.com,1999:blog-3764912039741974037.post-87214052686531984952013-02-06T09:38:41.850-05:002013-02-06T09:38:41.850-05:00Great article and couldn&#39;t agree more, Marc. T...Great article and couldn&#39;t agree more, Marc. The rating system/industry is badly flawed and the availability of good open-source analytics to provide an objective calculation/rating is a huge step in the right direction. ThanksPeter Orrhttps://www.blogger.com/profile/00811088302744373885noreply@blogger.com